Correlation Between Duksan Hi and BGF Retail
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and BGF Retail at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Duksan Hi and BGF Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and BGF Retail Co, you can compare the effects of market volatilities on Duksan Hi and BGF Retail and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Duksan Hi with a short position of BGF Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and BGF Retail.
Diversification Opportunities for Duksan Hi and BGF Retail
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Duksan and BGF is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and BGF Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Retail and Duksan Hi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Duksan Hi Metal are associated (or correlated) with BGF Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Retail has no effect on the direction of Duksan Hi i.e., Duksan Hi and BGF Retail go up and down completely randomly.
Pair Corralation between Duksan Hi and BGF Retail
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the BGF Retail. In addition to that, Duksan Hi is 1.63 times more volatile than BGF Retail Co. It trades about -0.08 of its total potential returns per unit of risk. BGF Retail Co is currently generating about -0.05 per unit of volatility. If you would invest 13,300,000 in BGF Retail Co on November 8, 2024 and sell it today you would lose (2,970,000) from holding BGF Retail Co or give up 22.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. BGF Retail Co
Performance |
| Timeline |
| Duksan Hi Metal |
| BGF Retail |
Duksan Hi and BGF Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and BGF Retail
The main advantage of trading using opposite Duksan Hi and BGF Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, BGF Retail can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BGF Retail will offset losses from the drop in BGF Retail's long position.| Duksan Hi vs. Daiyang Metal Co | Duksan Hi vs. Daishin Information Communications | Duksan Hi vs. Kukil Metal Co | Duksan Hi vs. DoubleU Games Co |
| BGF Retail vs. Solus Advanced Materials | BGF Retail vs. Asiana Airlines | BGF Retail vs. SEOJEON ELECTRIC MACHINERY | BGF Retail vs. GS Engineering Construction |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |